By Oyku Ilgar & Zoryana Zagorodnya, SAP
In a crazy world where robots are calling it quits from working too much, popular restaurants are getting sued over a chicken wing shortage, and your long-awaited gaming console is stuck on a ship in a super busy canal, who knows better than anyone that ship happens? Supply chain professionals.
Whether it's a bridge collapsing or a shipment going sideways in a canal, each crisis reminds us how important it is to have a supply chain that foresees or adapts to unexpected situations.
gettyLuckily, there is a day to celebrate this intricate web that represents the culmination of a complex process involving design, manufacturing, and logistics that bringing you your favorite sauce, your morning pick me up, and that customized coffee mug from a friend.
On this National Supply Chain Day, dive into the top supply chain practices that enable supply chain leaders to stay ahead of the curve.
#1 Build visibility to enable agility
Since the term "supply chain management" hit the scene in 1982, it's been the glue holding the global market together during tough times and unexpected hiccups. Whether it's a bridge collapsing or a shipment going sideways in a canal, each crisis reminds us how important it is to have a supply chain that foresees or adapts to unexpected situations.
And the key that distinguishes the difference between thriving and just surviving is visibility.
Unlocking this full visibility is crucial for conquering the obstacles that come your way, both now and in the future. Only 6% of organizations have full visibility into their supply chain operations. By breaking down silos across both departmental and company boundaries, businesses can respond more quickly to changes or disruptions by creating a seamless flow of information that leads to smarter decision-making and more effective collaboration across the supply chains.
#2 Harness the power of AI and ML for strategic decision-making
AI has the potential to be a game-changer for supply chains. When integrated into operations, it becomes a powerful predictor of events and empowers businesses to make strategic decisions that lead to success.
It enables the creation and utilization of real-time and accurate data for supply chains and for professionals to provide visibility for making timely and intelligent decisions.
For example, anomaly detection and visual inspection are powerful tools for companies to stay ahead of the game. Businesses can swiftly pinpoint and address issues in real-time, reduce wastage, and improve overall production quality. By harnessing the power of data analytics and machine learning algorithms, they prevent potential equipment malfunctions before they occur, allowing for strategic scheduling of maintenance and safeguarding against costly breakdowns and production chokepoints.
In the Future of Supply Chain podcast, SAP’s Digital Supply Chain Global Marketing VP, Mindy Davis said: “Moving forward, what we'll see is more supply chain executives, CEOs in the related buying centers, having a seat at the table in terms of making business decisions for the company so that they can thrive and survive moving forward.”
#3 Embrace innovation for a sustainable future
Supply chains of today are more than just a series of connections – they are at the forefront of sustainability and environmental issues. Therefore, embracing innovation is imperative in shaping a sustainable future.
‘‘Supply chain and it's historically proven is the innovation engine for a better world,” said SAP’s Global Head of Digital Supply Chain, David Vallejo in the Future of Supply Chain podcast.
The push for greener practices and reducing carbon emissions has put a spotlight on the need for improvement in supply chains. With the demand for sustainability data on the rise, decision-makers are now scrutinizing their supply chains for innovative ways to incorporate more eco-friendly business practices.
The shift in consumer preferences has a domino effect on supply chains. A recent study revealed that a significant 73% of consumers now consider sustainability a major factor when making their purchases. To meet these changing demands, businesses need to start considering sustainable practices such as using greener fuels, cutting emissions, and enhancing working conditions for employees.
Vallejo further added, “At the end of the day, it drives the innovation for all of the industrial revolutions from the steam engines to mass production, and computerized systems. It moved the human being actually to become better and more responsible with the planet. It drove a globalized world of peace because we're reliant on each other.”
To learn more about enabling a risk-resilient and sustainable supply chain, please join us at the upcoming SAP Sapphire & ASUG Annual Conference, from June 3-5, 2024 in Orlando.
